Sunday, April 10, 2016

Stock Market Crash?


For over 10 years the US stock market has been rising (with the exception of a small COVID blip), but can this continue forever? Well in this video we examine the forces which suggest we're headed towards a market crash and discuss whether we could indeed be headed toward a crash.

2:46 Schiller Price to Earnings Ratio = total market cap / average annual earnings
4:38 Buffett Indicator = total market cap / America's current GDP
5:26 CBOE Skew Index ~ out-of-the-money option contracts = essentially giving the buyer to buy or sell a share at a price it is currently not trading at = measure of investors' insuring against a crash.

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